BusinessBusiness RecoveryProposed EU law on small business accounts filing will cause Companies House population explosion

Proposed EU law on small business accounts filing will cause Companies House population explosion

The European Parliament and Council of ministers are now considering whether to pass new EU law abolishing the need for businesses under 1 million euro turnover to file accounts at official registries. According to Internal market and Services Commissioner Charlie McCreevy, this would relieve microbusinesses of administrative burden in tough economic times.
If this became law in member states like the UK, I reckon this could lead to a stampede of private businesses (sole traders, partnerships etc) registering as incorporated companies at the CRO.Why? Well, private businesses have traditionally stayed private in the past because they didn’t want to reveal their financial positions to all and sundry at Companies House. The downside of remaining private is that business owners have unlimited liability for debts. Under the proposed new law, small businesses will be able to register as limited liability companies, and still not reveal their accounts if their turnover is under 1 million euros per annum. I’d say that would be a pretty attractive proposition! Whoever said small is beautiful may well have been right!

Related Articles

Martin Williams

Business Recovery Martin Williams

6y Accountancy Age, Reporters
Time to Act against slow payers

Business Recovery Time to Act against slow payers

7y Martin Williams
Cash-struck consumers dent recovery hopes

Business Recovery Cash-struck consumers dent recovery hopes

7y Martin Williams
Sort out the credit sloths

Business Recovery Sort out the credit sloths

7y Martin Williams
Window dressing won't save Britain's high streets

Business Recovery Window dressing won't save Britain's high streets

7y Martin Williams
EU ding dong over accounts filing Exemption

Accounting Standards EU ding dong over accounts filing Exemption

7y Martin Williams
Insolvency stats are head-scratchingly strange

Business Recovery Insolvency stats are head-scratchingly strange

7y Martin Williams
Authorities wake up to £38bn robbery

Business Recovery Authorities wake up to £38bn robbery

7y Martin Williams